Project On Maruti

PROJECT REPORT
ON
“Study of Marketing Management Practice’’

IN
Maruti Suzuki
SUBMITTED IN PARTIAL FULFILMENT OF THE

REQUIREMENT
MASTER OF MANAGEMENT STUDIES
BY
TEJAS SANJAY LIMKAR
ROLL NO 2018217
MMS-II (SEM III)
YEAR 2018- 2020
LALA LAJPATRAI INSTITUTE OF MANAGEMENT

MAHALAXMI, MUMBAI – 400034
PROJECT REPORT
ON
“Study of Marketing Management Practice”

IN
Maruti Suzuki
SUBMITTED IN PARTIAL FULFILMENT OF THE

REQUIREMENT
OF
MASTER OF MANAGEMENT STUDIES
BY
TEJAS SANJAY LIMKAR

ROLL NO 2018217
MMS-II (SEM III)
YEAR 2018-2020
LALA LAJPATRAI INSTITUTE OF MANAGEMENT

MAHALAXMI, MUMBAI - 400034
SUMMER INTERNSHIP PROJECT
SUBMITTED BY
TEJAS SANJAY LIMKAR
ROLL NO – 2018217
MMS – II (SEM III)
YEAR 2018 - 2020
Certificate
This is to certify that the project work titled “Study of Marketing

Management Practice ” is a summer internship work carried out by Mr.
TEJAS SANJAY LIMKAR.
The project was completed for “ Maruti Suzuki “, under the guidance of
NITIN KERE
I further certify that the said work has not been submitted in the part or in
full, to any other University.
Date: 11th September, 2019
_____________________ _____________________
Prof. Vikas Sharma Dr V.B. Angadi
Project Guide Director
DECLARATION
I, Mr. TEJAS SANJAY LIMKAR, student of Lala Lajpatrai Institute

of Management of MMS II (Semester III) hereby declare that I have
completed the summer internship project on Study of Marketing
Management Practice with Maruti Suzuki in the Academic year 2018
- 2020. The information submitted is true & original to the best of my
knowledge.
TEJAS SANJAY LIMKAR

ACKNOWLEDGEMENT
At the outset of this project, I would like to express my profound thanks

to a few people without whose help, completion of this project would not
have been possible.
First and foremost, I would like to express sincere thanks to Maruti
Suzuki for giving me this opportunity to work with them.
The list is endless but to name a few special people, I would like to thank
Nitin kere and Marketing Department for being extremely supportive
and guiding me throughout my internship and giving me constant
motivation and expert advice.
I would also like to thank the entire Marketing Department for
providing me their precious time and making this internship a successful
learning experience.
I am very grateful to Dr. Angadi, Director of Lala Lajpat Rai Institute of
Management, for giving me the opportunity to do this project in (Maruti
Suzuki).
I would also like to thank Prof. Vikas Sharma for being an excellent
mentor and helping me whenever I approached him.
Last but not the least; I take pride in thanking my parents Mr. Sanjay
Limkar & Mrs. Ranjita Limkar, siblings and friends for their much
valued support.
Executive summary
Summer Training is an integral part of MASTER IN MANAGEMENT STUDIES. As

a part of the curriculum student are required to undergo 2 months training with
reputed organization to learn the daily activity and if possible help the management
study and address some identified issue associated with some specific engagement
area.
The main purpose of the training is to get exposure to the functioning of the
organization. Maruti Suzuki was promoted in the 1970.It is professionally managed
and well establishes company enjoying the confidence of consumers because of its
superior quality product and excellent customer services.
Maruti Suzuki is a company, which believes in providing quality. Due to these

features I did my summer internship in Maruti Suzuki with the aim of getting
exposure to the functioning of the organization.
INDEX
Sr. No Particulars Page No
1 Introduction to Automobile Sector 1
2 Objectives of the study 5
3 Evolution of Automobile Industry in 6
India
4 Porter’s Five Forces Model in the 8
Indian Automobile Sector
5 History of Automobile Industry 9
6 Company Profile 18
7 The Competitive Strategies 23
8 The Marketing Mix 27
9 SWOT Analysis 36
10 Marketing Strategies of Maruti 39
Suzuki
11 Pest Analysis 42
12 Segmenting, Targeting & Positioning 44
13 Product Life Cycle 47
14 Learning’s and Achievements 48
15 Research Methodology 50
16 Data Analysis 54
17 Questionnaire 71
18 Annexures 75
19 Limiations 76
20 Conclusion 77
21 Bibliography 78
Study of Marketing Management Practice in Maruti Suzuki
1. INTRODUCTION TO AUTOMOBILE SECTOR
The Automotive Industry in India is one of the largest in the world with an annual
production of 23.37 million vehicles in FY 2014-15, following a growth of 8.68 per
cent over the last year. The automobile industry accounts for 7.1 per cent of the
country's gross domestic product (GDP). The Two Wheelers segment, with 81 per
cent market share, is the leader of the Indian Automobile market, owing to a growing
middle class and a young population. Moreover, the growing interest of companies in
exploring the rural markets further aided the growth of the sector. The overall
Passenger Vehicle (PV) segment has 13 per cent market share.
India is also a prominent auto exporter and has strong export growth expectations for
the near future. In FY 2014-15, automobile exports grew by 15 per cent over the last
year. In addition, several initiatives by the Government of India and the major
automobile players in the Indian market are expected to make India a leader in the
Two Wheeler (2W) and Four Wheeler (4W) market in the world by 2020
1
Market Size
The industry produced a total 14.25 million vehicles including PVs, commercial
vehicles (CVs), three wheelers (3W) and 2W in April–October 2015, as against 13.83
million in April–October 2014, registering a marginal growth of 3.07 per cent, year-
to-year.
The sales of PVs grew by 8.51 per cent in April–October 2015 over the same period
in the previous year. The overall CVs segment registered a growth of 8.02 per cent in
April–October 2015 as compared to same period last year. Medium and Heavy
Commercial Vehicles (M&HCVs) registered very strong growth of 32.3 per cent
while sales of Light Commercial Vehicles (LCVs) declined by 5.24 per cent during
April–October 2015, year-to-year.
In April–October 2015, overall automobile exports grew by 5.78 per cent. PVs, CVs,
3Ws and 2Ws registered growth of 6.34 per cent, 17.95 per cent, 18.59 per cent and
3.22 per cent, respectively, in April–October 2015 over April–October 2014
Investment
In order to keep up with the growing demand, several auto makers have started
investing heavily in various segments of the industry during the last few months. The
industry has attracted foreign direct investment (FDI) worth US$17.4 billion during
the period April 2000 to June 2017, according to data released by Department of
Industrial Policy and Promotion (DIPP).
Some of the major investments and developments in the automobile sector in India
are as follows:
 Global auto maker Ford plans to manufacture in India two families of engines
by 2017, a 2.2 litre diesel engine code-named Panther, and a 1.2 litre petrol engine
code-named Dragon, which are expected to power 270,000 Ford vehicles
globally.
2
 The world's largest air bag suppliers Autoliv Inc, Takata Corp, TRW
Automotive Inc and Toyoda Gosei Co are setting up plants and increasing
capacity in India.
 General Motors plans to invest US$1 billion in India by 2020, mainly to
increase the capacity at the Talegaon plant in Maharashtra from 130,000 units a
year to 220,000 by 2025.
 US-based car maker Chrysler has planned to invest Rs 3,500 crore (US$525
million) in Maharashtra, to manufacture Jeep Grand Cherokee model.
 Mercedes Benz has decided to manufacture the GLA entry SUV in India. The
company has doubled its India assembly capacity to 20,000 units per annum.
 Germany-based luxury car maker Bayerische Motoren Werke AG's (BMW)
local unit has announced to procure components from seven India-based auto
parts makers.
 Mahindra Two Wheelers Limited (MTWL) acquired 51 per cent shares in
France-based Peugeot Motorcycles (PMTC).
Government Initiatives
The Government of India encourages foreign investment in the automobile sector and
allows 100 per cent FDI under the automatic route.
Some of the major initiatives taken by the Government of India are:
 The Government of India aims to make automobile manufacturing the main

driver of "Make in India" initiative, as it expects the passenger vehicles market to
triple to 9.4 million units by 2026, as highlighted in the Auto Mission Plan (AMP)
2016-26.
 In the Union budget of 2015-16, the Government has announced plans to
provide credit of Rs 850,000 crore (US$127.5 billion) to farmers, which is
expected to boost sales in the tractors segment.
3
 The government plans to promote eco-friendly cars in the country—i.e. CNG-

based vehicles, hybrid vehicles, and electric vehicles—and also to make
mandatory 5 per cent ethanol blending in petrol.
 The government has formulated a Scheme for Faster Adoption and
Manufacturing of Electric and Hybrid Vehicles in India, under the National
Electric Mobility Mission 2020, to encourage the progressive introduction of
reliable, affordable, and efficient electric and hybrid vehicles into the country.
 The Automobile Mission Plan (AMP) for the period 2016–2026, designed by
the government is aimed at accelerating and sustaining growth in this sector. Also,
the well-established Regulatory Framework under the Ministry of Shipping, Road
Transport and Highways, plays a part in providing a boost to this sector.
4
OBJECTIVES OF THE STUDY
The present study of the marketing strategy of the Maruti Suzuki (Pvt.) Limited
revolves around the following broad objectives:
(i) To study the evolution and growth of the Maruti Suzuki (Pvt.) Limited in
the context of the automobile revolution in India.
(ii) To study the growth strategy of the Maruti Suzuki (Pvt.) Limited and the
marketing methods followed by it in this regard.
(iii) To study the small car revolution in India and the contribution of the
Maruti Suzuki (Pvt.) Limited to it.
5
2. EVOLUTION OF AUTOMOBILE INDUSTRY

IN INDIA
“A market is never saturated with a good product, but it is very quickly saturated with
a bad one. – Henry Ford”
INDIAN AUTOMOBILE INDUSTRY
The automotive industry is one of the largest industries worldwide and in India as
well. The automotive sector is a vital sector for any developed economy. It drives
upstream industries like steel, iron, aluminium, rubber, plastics, glass, and electronics,
and downstream industries like advertising, transport and insurance.
The automotive industry can be divided into five sectors:-
1) Passenger Cars
2) Multi- Utility Vehicles (MUVs)
3) Two- and Three-wheeler Vehicles
4) Commercial Vehicles – Light Commercial Vehicles (LCVs) / Medium and
Heavy Commercial Vehicles (MHCVs)
5) Tractors
6
We will be looking at the Passenger car industry in India.
Despite a head start, the passenger car industry in India has not quite matched up
to the performance of its counterparts in other parts of the world. The primary
reason has been the all-pervasive regulatory atmosphere prevailing till the opening
up of the industry in the mid-1990s.The various layers of legislative Acts
sheltered the industry from external competition for a long time. Moreover, the
industry was considered low-priority as cars were thought of as ‘unaffordable
luxury’.
The Following Table presents a Comparative view of the extent of Motorization in

India vis-a-vis certain Countries in the World
Country Passenger Cars in Use Two-Wheelers in Use

Per Thousand Persons per Thousand Persons
Developed Countries
U.S.A. 478 14
United Kingdom 373 12
Japan 395 115
Philippines 10 14
South Korea 167 59
India 5 27
3. PORTER FIVE FORCES MODEL IN THE INDIAN
7
AUTOMOBILE INDUSTRY
Threat from New Players: Increasing Market Strength of Consumers:

Increasing
 Most of the major global players are  Increases awareness among consumers
present in the Indian Market; a few more are has raised expectations. Thus, the
expected to enter. ability to innovate (technology being
 Financial strength assumes importance as the enabler) is critical.
high investments are required for building  Product Differentiation via new
capacity features, improved performance and
 Access to distribution network is after sales support is critical.
important. Although important for all  Increases competitive intensity has
segments, having a distribution network in limited the pricing power of
rural areas is vital for two-wheeler makers. manufacturers.
 Lower tariffs in the post-World Trade
Organization era may expose Indian companies
to threat of imports (however, the threat may be
mitigated by non-tariff barriers that may still
exist).
Rivalry within the Industry: Market Strength of

High Suppliers: Low
 There is keen competition  A large number of

in select segments (such as automotive component
the Compact and Mid-size suppliers are present in
segments in passenger cars, the Indian automotive
and the motorcycle segment industry.
in two-wheelers).  Automotive players are
 New multinational players rationalizing their
may enter the market. Threat from Substitutes: vendor base to achieve
Low-Medium consistency in quality.
 With consumer preferences
changing, inter-product
substitution is taking place
(scooters are being replaced
by motorcycles, and Mini
cars by Compact Mid-size
cars.
8
4. HISTORY OF AUTOMOBILE INDUSTRY
Initially, in the post-liberalization period, the automotive sector, especially the

passenger car segment, saw a boom, derived primarily from economic vibrancy,
changes in Government policies, increase in purchasing power, improvement in life
styles, and availability of car finance. The passenger car industry was finally
deregulated in 1993. However, the automobile industry, which contributed
substantially to the industrial growth in FY1996 failed to maintain the same
momentum between FY1997 and FY1999. The overall slowdown in the economy and
the resultant slowdown in industrial production, political uncertainty and inadequate
infrastructure development were some of the factors responsible for the slowdown
experienced. In FY2000, the sector experienced a turnaround and witnessed the
launch of many new models.
Two things that stunted growth of this industry in the past have been low demand and
lack of vision on the part of the original equipment manufacturers (QEMs). However,
the demand picked up after the liberalization of the regulatory environment, and
global QEMs- who enjoy scale economies both in terms of manufacturing and
research and development (R&D) - entered the Indian market. This has resulted in a
big shift in the way business is conducted by suppliers, assemblers and marketers.
9
PASSENGER CAR INDUSTRY IN INDIA: HIGHLIGHTS
 Passenger car sales are expected to increase at a compound annual growth rate
(CAGR) of 8% over the period FY2004-2007. The six broad segments in the car
market today are- Mini, Compact, Midrange, Executive, Premium and Luxury. In
the medium term, growth in the Indian passenger car industry is expected to be led
largely by the Compact and Mid-range Segments.
 The critical success factor has changed from price to price value.
 In terms of engine capacity, the Indian passenger car market is moving towards cars
of highest capacity.
 With the launch of new models from FY2000 onwards, the market for MUVs has
been redefined in India, especially at the upper end. Currently, the higher-end
MUVs, commonly known as Sports Utility Vehicles (SUVs), occupy a niche in
the urban market. With the success of SUVs, the line of distinction between
passenger cars and MUVs in the Indian market is getting increasingly blurred.
 Domestic car manufacturers are now venturing into areas such as car financing,
leasing, and fleet management, and used-car reconditioning /sales, to complement
their mainstay-business of selling new cars.
10
TRENDS IN THE INDIAN PASSENGER CAR INDUSTRY
Distribution Systems: Product Technology: Entry of Foreign

Changing relationship of MPFI; CRDi; diesel
manufacturers with system
dealers and suppliers Manufacturers
Manufacturing
Technologies:
Auto Finance: Flexible
Better/ cheaper schemes Indian Manufacturing
Passenger Car Systems
Industry
Regulatory framework:
Deregulation; Components:
De licensing; Tierisation;
Removal of QRs; Tyres: Radials,
Introduction of strict Structure of
Retreading
Emission norms demand:
Change in industry
segmentation
Materials: Low
weight; Synthetic
Composites
11
KEY DEVELOPMENTS IN THE INDUSTRY
COMPANY NAME DOMESTIC SALES MARKET SHARE

APR-AUG APR-AUG GROWTH APR-AUG APR-AUG
2009 2010 2009 2010
Daimler Chrysler India 633 662 4.6 0.2 0.2

Pvt Ltd
Fiat India Automobiles 2907 635 -78.2 0.9 0.2
Pvt Ltd
Ford India Ltd 8852 6944 -21.6 2.8 2.1
General Motors India Ltd 7179 4981 -30.6 2.3 1.5
Hindustan Motors Ltd 5610 5626 0.3 1.8 1.7
Honda Siel Cars India 13813 17560 27.1 4.4 5.3
Ltd
Hyundai Motor India 48299 63140 30.7 15.3 19
Ltd
Maruti Udyog Ltd 162007 169606 4.7 51.4 51.1
Skoda Auto India Ltd 3003 3439 14.5 1 1
Tata Motors Ltd 58548 55536 -5.1 18.6 16.7
Toyota Kirloskar Motor 4519 4030 -10.8 1.4 1.2
Ltd
Total Passenger Car 315370 332159 5.3 100 100
12
Sales
During April – August 2006, the passenger car sales in India at 332159 units, marked
a growth of 5.3%over the previous year. The growth in the domestic sales of
passenger cars was led by strong growth in volumes reported by compact and mid –
size segments. While the share of mini and executive segments declined in the period
under study, the share of other segments increased.
For instance, the share of compact segment in the domestic car sales increased from
59.7% in April – August 2005 to64.9% in April – August 2006, mid – size segment
from 20.5% to 22%, and the share of Premium segment was stagnant at 0.7% in the
same period.
New variants launches, easy availability of finance at relatively lower interest rate and
price discounts offered by the players have played an important role in driving the
sales growth in the domestic passenger car industry.
KEY DEMAND DRIVERS
Traditionally, disposable income was perceived as the key factor driving passenger
car demand. But over time, other factors that are known to have an impact on demand
have emerged. These include the need for greater mobility, non- availability of public
transport services, availability of cheap finance, development of the used-car market,
introduction of new technologically superior models, increasing levels of urbanization
and changing consumer profiles.
13
between the
demand for cars
and ECONOMIC
14 GROWTH.
The Central
Government’s AUTO
POLICY on excise and CAR
customs is an important DEMAND
aspect affecting the Availability of NEW
demand and supply of MODELS is likely to
cars. increase and
change the
structure of
demand.
A mature USED CAR
MARKET would, on one
hand, encourage AVAILABILITY OF CHEAP Competitive
consumers to trade in their FINANCE is a key determinant PRICING is crucial
cars faster, and on the of demand as most cars for gaining market
other, eat well into the (around 60%) purchased in share, especially in
share of new cars. India are financed. the small car
segment.
SEGMENT ANALYSIS
degree of and change the structure of demand.
There is a high CONSUMER PROFILE are likely to increase
the income threshold, and CHANGING
increase in the number of people crossing
CAPITA INCOME and demand for cars,
High degree of correlation between PER
MINI COMPACT MID-SIZE EXECUTIVE PREMIUM LUXURY
Vehicle Length <3400 3401-4000 4001-4500 4501-4700 4701-5000 >5000

mm
Maruti Udyog 800 Alto Esteem
Ltd Omni Zen Baleno
Wagon R Altura
Versa
Hyuindai Motor Santro Accent Elantra Sonata
India Ltd
Hindustan Motors Ambassad Contessa
Ltd or
Mitsubishi
Lancer
Fiat India Palio Siena
Automobile Ltd Uno Adventure
Weekend
General Motors Corsa Sail Opel Opel Vectra
India Ltd Corsa
Opel
Astra
Opel
Swing
Honda Siel India City Accord
Ltd
15
Ford India Ltd Ikon Mondeo

TELCO Indica Indigo
DalmierChrysler Mercedes Mercedes Mercedes
India Ltd Benz C Benz E Benz S
Class,M Class Class
Class,SL
The credit for growing the Indian Compact Segment, and in fact, the Indian Passenger
car industry goes partly to the Korean manufacturers (HMIL and the erstwhile
Daewoo) and the Indian player Tata Motors.
The HMIL Santro was launched in September1998 and created a sensation on account
of its aggressive pricing at Rs.2, 99,000. The Santro became successful as HMIL had
got the price –value equation just right. While Daewoo’s Matiz picked up only seven
months after its launch, the Santro was selling more than 3000units a month only 2
months after its launch. HMIL had infact, planned its entry into the Indian market
with the 1495cc Accent but later opted in favour of the smaller car. At the time the
Santro was launched, both the options available in the segment- Fiat Uno and the Zen-
had been around in the Indian Market for quite some time and lacked novelty. Santro
was not only cheaper but also incorporated a multi-point fuel injection (MPFI) system
that offered superior fuel economy to Zen’s carburetor system.
The Matiz was launched in November 1998. Its 800cc engine immediately
encouraged comparisons with Maruti 800. The initial launch price of Matiz at Rs. 3,
55,000 was significantly higher than the Santro’s Rs, 2, 99,000. Given that the Matiz
was smaller than the Zen and the Santro, the initial impact was not so strong. In May
1999, Daewoo launched stripped-down variants. The launch of the cheaper versions
saw the sales of Matiz reaching almost 2000 units in May 1999 and recording an
average monthly sale of 3123units in FY2000. However, the financial crisis faced by
the parent, Daewoo Motor Corporation affected the performance of the Indian
subsidiary (that was reporting net loss and had significant borrowings). Subsequently,
the Indian subsidiary halted production.
16
MUL now has 4 cars in the Compact Segment: the Swift, the Zen, the Alto and the
Wagon R. In terms of market share, Zen steadily lost share in FY2000 to its
competitors. Despite this, there is no denying that the Zen is one of the bigger success
stories in the Indian car market. With 3 models, MUL is the market leader in the
Compact segment.
The Alto arrived in India when there was little room for man oeuvre in a crowded
compact segment. It was launched in 2 versions, the LX and the VX. The base version
is priced competitively with the deluxe version of the Maruti800, while the higher-end
version competes with the based versions of the Zen and the Wagon R.
The 1061cc Wagon R is available in four manual transmission variants (LX, LXi, VX
and VXi) and one automatic transmission variant (AX). Since its introduction in
February 2000, Wagon R has been selling in the 1500-3000units per month range as
against 5000-8000units per month range for the Santro. The presence of the already
well-established Matiz and the Santro meant that the novelty factor did not work too
well for Wagon R.
However 2005 has been a revolutionary year for Maruti since its new Launch Swift
has been a huge success in the market and the most demanded car as well.
The other cars in the compact segment to have made an immediate dent in the market
with their launch are the Palio of Fiat India and the improved version Indica V2 of
Tata Motors. Indica was the third largest selling car in FY2002 in this segment, after
Santro and Zen. On the other hand, Palio was launched at the time when the passenger
car industry was witnessing a slump but the model cut across the barriers and was
able to create a market for itself. However, the success of this model was short-lived
and the sales declined thereafter. Nevertheless, launches of new variants (such as the
diesel version) helped sales recover marginally.
The size of the compact segment has increased as a result of the high growth rate
attained by the models in this segment. The changing price-value equation, coupled
with the declining interest rates and easy availability of finance, has prompted
consumers to move towards the compact car segment from the mini segment. The
high rate of growth achieved by the compact segment has attracted the attention of
17
other players also; including GM. GM has entered the compact segment with the
launch of its Opel Corsa Sail in May2003.
5. COMPANY PROFILE
Very often, there is an analogy drawn between the state of the great Indian roads and
the pace of economic development in the country. Needless to say, it’s not a very
pleasing comparison. So the average Indian customer who rides the roads of India is
naturally extremely cautious when it comes to investing in a vehicle. Only those
rough and tough enough to survive the potholes and nightmarish surfaces can pass
muster. In such a scenario, a foreign company launching a car in the Indian market
was bound to be looked upon with scepticism and suspicion, more so, if it had South
Korean origins. South Korean companies were perceived not to be quality oriented.
The failure of Korean companies like Lucky Goldstar (later to be re-launched as LG,
which is another marketing success) and the bad word of mouth for Daewoo led to
this perception.
MARUTI TOOK THE INITIATIVE AND GAINED
18
In the late 1990s, car manufacturers like Ford, General Motors, and Fiat were facing
miserably in the Indian market. Maruti had a market share of a whopping 79 per cent
in the passenger car segment. Daewoo and Telco were creating hype over the
impending launches of their cars Matiz and Indica respectively. In such a scenario, the
top management of Hyundai Motor India Ltd, which has South Korean origins, had a
tough decision to make. It was a big gamble to go ahead with the launch of the small
car – Santro. The Hyundai management stuck to a simple strategy – launch a quality
product in the most promising segment with the latest technology and price it
aggressively. In the pre-launch period in late 1997, the company commissioned
market research project to understand the Indian consumer psyche and specify a
benchmark for the pricing policy. The results of this survey and the actions taken
thereafter had a bearing upon the success of the product later on. The Indian
consumers showed an immense dislike to the shape of Santro. One consumer even
likened it to a “funeral hearse”. A second important result was that Hyundai is an
unknown brand with almost zero brand equity amongst Indian consumers. The
company immediately undertook the initiative of reshaping and customising the car
for the Indian customer. The tall rear end was reduced and made more aesthetically
appealing. The Santro was all set for the Indian launch.
MARUTI-MARKETING GENIUS
Here came the most important aspect of the launch – the marketing strategy. This was
a factor that could make or mar the success of the Santro. Hyundai tied up with the
advertising agency Saatchi and Saatchi, who hit upon a novel strategy. Bollywood star
Shah Rukh Khan was roped in to be the brand ambassador. A three-pronged strategy
was designed to attract the consumer:
Educate Indian Consumers about Hyundai
 Create hype and expectations about the Santro
 Explain the virtues of the Santro
19
The TV & Press Campaign broke in June 1998. The initial TV spots and the press
campaign showed Shah Rukh Khan being approached by a Hyundai official to
advertise the Santro. Shah Rukh was not convinced about Hyundai and he was shown
to ask all questions a normal Indian consumer is expected to ask. What is Hyundai?
Why should I advertise for the Santro? Will it match customer service expectations?
What about dealer networks? How can an international car meet the requirements of
Indian roads? As the campaign went through all of these questions, the Hyundai
official answered Shah Rukh Khan. By the time the car was actually launched, Shah
Rukh Khan proclaims, “he is convinced”. He declares that he is now ready to
advertise the Santro since he is certain that the Santro is the car for India. This high
profile campaign backed by some very innovative media buying, which went for
maximum coverage with the minimum budget, broke all grounds in terms of creating
consumer expectations and hype in the market.
20
ARRIVAL OF SMALL CARS IN INDIAN MARKET WAS THE

BEST THING TO HAVE HAPPENED TO MARUTI
The race for India's small-car market has begun. But only those among the big four
who get all their strategies right will win this unforgiving contest. The prize: not just
the largest automobile segment, but also survival in this market. They're lined up for
the last lap. With Market India becoming a minefield for the world's largest auto-
makers, the Formula I has become brighter than the red lights that have stopped them
in their tracks so far--only the small car will enable endurance. Bumper-to-bumper,
therefore, the combatants are accelerating towards the small-car segment. Amounting
to 60 per cent of the Rs 14,500-crore automobiles market, and hitherto monopolised
by the Rs 8,454-crore Maruti Udyog with its Maruti 800 and Zen, it's the final frontier
between survival and extinction. So far, accustomed as they are to the priorities of the
customer in the developed markets, the global auto-makers have taken many wrong
turns in India. Only now, after many knocks, crashes, and repair jobs, are they back
on track, heading towards their destination.
But neither the road nor the end-point of their journey is wide enough for all of them.
At a projected 6-lakh units by 2000, demand for cars is still 25 per cent less than the
number of F-150 pick-up trucks sold by the $153.62-billion Ford Motor Co. in 1997.
But the importance of India on the world auto map is strategic. With an estimated
total capacity of 58 million units a year, the global auto industry is racing far a head of
the demand of 45 million units. Markets in North America, Europe, and Japan--which
account for 74 per cent of the demand--have become saturated. Global car-
manufacturers will need to plant their feet in a low-cost, young, stable market to sell
21
their products to create a global supply-base for cars and components. The first wave
of manufacturers simply failed to make a splash in India. They were revving up for a
growth that never happened. Their entry reasoning: since India had been a small-car
market for years, it was only a matter of time before it enlarged to accommodate
bigger, luxury cars. That the logic was flawed has now become evident. India is still a
small-car market for anyone who wants both revenues and profits.
22
Not surprisingly, Ford (which launched the 1,300-cc petrol and the 1,800-cc
diesel Escort in 1996), the $178.17-billion General Motors (which entered with the
1,600-cc Opel Astra in 1996), and the $72-billion Daewoo Group's Rs 963.37-crore
Daewoo Motors (which launched the 1,498-cc Cielo in 1995) are limping at the
starting-block. None of the 3 has managed to chalk up sales of more than 18,000 units
a year. Even Maruti Udyog--a joint venture between the $12.12-billion Suzuki Motor
Corporation of Japan and the Government of India--has been unable to grow the
luxury segment. At 18,000 units in 1997-98, its 1,300-cc Esteem luxury car's sales fell
by 28 per cent. Explains B.V.R. Subbu, 43, Director (Sales & Marketing), Hyundai
Motor India: "Traditional mid-car buyers are turning to small cars; they are waiting
for new technologies." Within 8 months of the 1,468-cc City's launch in January,
1998, the $48.87-billion Honda Motor has sold 4,180 cars in the Indian market, which
is more than the combined sales (3,317 units) of the Astra and the Escort. But despite
Honda's initial success, the luxury-car segment has plateaued, and there seems to be
room for just one player. In the past 3 years, the segment has shrunk in value, dashing
car-makers' hopes of rebuilding their futures in India. Naturally, the only safe haven
that remains is the small-car segment, which is 2.45 lakh units in size. And the only
segment expected to grow at 15 per cent a year for the next 5 years. The new
millennium cannot but belong to the small car. However, economics of upstream
manufacture will only ensure survival. Sophisticated downstream skills are essential
to make inroads into the tough
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6. THE COMPETIVE STRATEGIES
In earlier days when the market was dominated by only few brands like Ambassador
& Premier Padmini, Maruti Suzuki India Limited entered the Indian market with
different strategy. The strategy of the company was to offer a compact, modern and
fuel efficient car. Maruti released its first Maruti 800 car on 14 December 1983 to
fulfill the dreams of Indian customers and became the market leader. Since 1983 till
date Maruti Suzuki gradually offered several choices to the consumer. Due to
aggressive competitors today Maruti Suzuki believes in Innovative Marketing
Strategies. With the changing needs, wants & requirements of customers and
markets, Maruti Suzuki is altering their Brand Positioning, Advertising and
Distribution strategy.
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BRAND POSITIONING STRATEGY:
Brand Positioning is the most vital concept in a brand‘s strategy. Brand Positioning is
also linked with managing a brand‘s meaning. Today several brand of cars are
positioning themselves on the features like Price, Comfort dimensions, Safety,
Mileage etc. Currently Maruti Suzuki followed a very effective multi-segmentation
strategy to grab the different segments of the market with different versions of its
brands. About brand positioning Mayank Pareek says that, Maruti Suzuki believe in
research and before launching a product the Maruti team does an extensive research
on the needs of the customer. Maruti try to understand the customer‘s demography
and psychology to position a brand. Also the company follows the suggestions made
by existing customers.
PROMOTIONAL STRATEGY:
Every company is it a big or small needs an innovative promotional strategy because

promotional campaigns tend to have a huge effect on the reception of the product.
Maruti Suzuki India Ltd has a formidable line-up of vehicles in its stable and has been
quite aggressive about promoting each of its automobile brands. With an intention to
face with cutthroat competition and due to declining market shares, in 2000 Maruti
Suzuki cut the prices of few models like Wagon R, Omni and Maruti 800 because
Maruti knew very well that the Indian consumer is very sensitive about price & this
price cut will definitely beneficial for company. In Jan 2002 to attract the customers,
Maruti decided that some of its corporate assets in Delhi including Maruti‘s
manufacturing plant and children‘s park should be promoted. With an intention to
promote road safety and efficient driving the company held ‘carnivals’ periodically at
IDTR. In 2003, to attract the customers Maruti Suzuki launched attractive campaign
like ―Change Your Life‖. The company also offered vehicle insurance for One rupee
only. In this campaign the customers were asked to write down the chassis and engine
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number of their vehicles on the entry form and had to answer the question. In this
contest the winners were chosen by a draw of lots and were entitled to gifts worth
Rs.50 million.In 2004, Maruti introduced the ‘2599’ offer under which by paying an
EMI of Rs. 2599 for seven years after a down payment of Rs.40000, a consumer
could buy a Maruti 800. In 2004 Maruti introduced the ‘Teacher Plus’ scheme, in a tie
up with SBI. In this scheme the bank offered reduced rates of interest for teachers
who were interested in buying a new car Rural India is a fast emerging as a focus area
in the country‘s economy. Maruti knew that there is a great potential in rural markets
& in rural markets, the endorsements of opinion makers takes precedence over an
informed objective Judgment. Considering this fact, Maruti Suzuki launched a
panchayat scheme for such opinion makers which covers the village Sarpanch,
doctors and teachers in government institutions, rural bank officers where in an extra
discount is given to make a sell. As a part of customer engaging strategy and to attract
the potential customers Maruti organized various mela’s wherein local flavor is added
by organizing traditional social activities like Gramin Mahotsava are conducted round
the year. As a part of promotional approach Maruti Suzuki promoted Swift & other
brands through sponsoring various live programmes (Dancing
shows) like Dance India Dance.
ADVERTISING STRATEGY:
Advertising is one aspect of brand building. Whenever Maruti launched any brand, it
supported that brand with an ad campaign. Maruti‘s advertising campaigns included
TVCs, Radio and Print ads, Point of Sale, Mobile promotions, online marketing,
Outdoor promotions. Maruti‘s advertising strategy focused both on building up its
corporate image and promoting its cars. Maruti‘s campaigns emphasized different
aspects of its cars, including fuel efficiency, looks, space, etc.In the late 1990s,
Maruti‘s advertising campaigns were handled by Lowe India (later known as Lowe
Lintas & Partners, India) and Rediffusion DY&R. While advertising related to
Esteem, Zen and Baleno were handled by Lowe India and the ad campaign of Maruti
800, Gypsy, Omni and Wagon-R were handled by Rediffusion. With an intention to
promote the all brands effectively, in 2000 Maruti decided to appoint Capital
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Advertising. In 2003, Maruti Suzuki came up with an innovative advertising that

became popular for its simplicity and clear message. In this ad one child plays with
his toy car & when the father asked him, he replies, ‘Kya karoon papa petrol khatam
hi nahi hota’. This ad depicted the fuel efficiency of Maruti Suzuki.
DISTRIBUTION STRATEGY:
Distribution is an important marketing mix. In earlier days the consumers used to

book for a car and wait for more than a year to actually buy it. Also the concept of
Show rooms was non existent. Even worse thing was the state of the after sales
service. With an objective to change this scenario & to offer better service to
customers, Maruti took initiative. To gain competitive advantage, Maruti Suzuki
developed a unique distribution network. Presently the company has a sales network
of 802 centers in 555 towns and cities, and provides service support to customers
at 2740 workshops in over 1335 towns and cities. The basic objective behind
establishing the vast distribution network was to reach the customers even in remote
areas and deliver the products of the company. The company has formed the Dealer
territories and the concept of competition amongst these dealers has been brought
about. Periodically corporate image campaigns in all dealership are carried out. In
2003, to increase the competition the company implemented a strategy for its dealers
to increase their profitability levels. Special awards were sometimes given by
company for sales of special categories. Maruti Suzuki had given an opportunity to
dealers to make more profits from various avenues like used car finance and insurance
services. In 2001, Maruti started an initiative known as ‗Non Stop Maruti Express
Highway‘. As a part of this initiative Maruti developed 255 customer service outlets
along with 21 highway routes by 2001-02. Also with an intention to provide fast
service in less time Maruti had offered Express Service Facility. In the year 2008,
Maruti had near about 2,500 rural dealer sales executives, among the total 15,000
dealer sales executives
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7. MARKETING MIX
The basic elements of marketing mix of a company are the 4 P’s (Product, Price,
Place and Promotion). The 4 P’s of marketing helps in determining the various
marketing strategies adopted by the company.
PRODUCT:
Maruti Suzuki has divided its product line into five segments as per the following
Table.Product Line Products
A1 (Mini) 800
A2 (Compact/Hatchback) Alto, Swift, Ritz, Celerio
A3 (Mid-size) Swift DZire SX4
Utility Vehicle Gypsy, Grand Vitara
Multi-Purpose Vehicle Omni, Eeco.
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The cars have also been divided into its various variants depending on the type of fuel
used. Some cars have been rolled out for use with both petrol and diesel. With rising
prices of petrol, there is a sharp demand for diesel-run vehicles. Also, Maruti Suzuki
has two of its cars with CNG fitting too. These are vehicles that run on CNG.
Examples of CNG run cars are Alto 800, Eeco, Wagon R, Celerio, Ertiga and SX4.
By the year 2015, Maruti Suzuki is planning to launch an electric car by the name
Swift Hybrid, which will be a hatchback car.
PRICE:
The prices of the cars of Maruti Suzuki have generally been set to target the lower
middle class and middle class families in India. Their pricing strategy is based on
their continuing vision of “Putting India on Four Wheels”. Their prices are so
designed as to enable people to upgrade from 2-wheelers to 4-wheelers and already 4-
wheeler owners to upgrade to a better 4-wheeler offered by the company..In 2007,
though the company changed its price strategy as it was being labeled as low-price
small car manufacturer. They launched plans of a new car in the premium car
segment, Maruti Suzuki Kizashi, to remove this label attached to the company’s
reputation
PLACE:
This is one part of the marketing mix where Maruti Suzuki has an advantage over all
of its competitors due to their presence in the country for the longest time as
compared to its rivals. They enjoy a well distributed and an extensive network of car
sale outlets, exclusive showrooms, authorized service stations, true value outlets.
Maruti Suzuki has two state-of-the-art manufacturing facilities setup in Gurgaon and
Manesar to the south of Delhi. The combined capacity for the two plants is 1.2 million
vehicles on an annual basis. Some numbers showing the extensive network for Maruti
Suzuki are: Showrooms and Car Sale Outlets - 933 covering 668 cities.
 Authorized Service Stations – 1845 covering 1395 cities
Dealership Outlets – 1101
True Value Outlets – 353 covering 208 cities.
 Express Service Stations on Highways – 30
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The True Value Outlets were started with a view to retain the customers under
exchange programs enabling the customers to upgrade their existing car models. Later
these outlets were converted to be a different vertical business unit of Maruti Suzuki
Ltd. to capture the market for pre owned cars in India based on the high resale value
of Maruti Suzuki cars giving up to 70 percent return on resale.
PROMOTION:
The company since so many years of operation are targeting the Indian middle class
families as their main consumers. That’s why their promotional strategy has always
been to create an emotional connect with the audience. Maruti Suzuki Ltd. has used
various media of promotion..
TV - There has been a lot of advertisements through this media as most of the target
audience connects to Maruti Suzuki through its emotional TV commercials
Print Media – The Company has also used newspaper, magazines to promote its
product to the consumers.
Radio – The Company also uses radio as an important media for advertising its
product line ,etc. .Apart from this, Maruti Suzuki Ltd. has also partnered with certain
TV shows like “India’s Got Talent” and also provides sponsorships to certain famous
events to make its presence felt. The company is also involved in certain CSR
activities mostly around its manufacturing units to make people grow with the
company. This all helps in creating a visibility and goodwill for the company for the
non-existing customers and hence, increasing the sales. There are strategic alliances
that Maruti Suzuki Ltd. has entered into with many banks, insurance firms to provide
the process of purchase of car easier for them. Maruti Suzuki also provides its
customers with a “Auto Card”. . The Company also conducts mega camps where they
provide AC and pollution checks, complimentary car wash to its customers to
improve customer Relations. Maruti Suzuki Ltd. also has an extensive CRM program
to manage its relationships with customers. Apart from all this, the company also has
various seasonal campaigns to target the audience like festival times to capture the
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celebration mood of people and convert it into sales. Festivals like Navratri, Diwali
etc. are times when huge discounts or other gifts are offered by the company
FUTURE OF CAR MARKET IN INDIA
The Indian automotive market offers tremendous opportunities due to a strong GDP
growth, increased urbanisation, an expanding middle class, an upward migration of
disposable incomes and availability of easy financing options. The Indian automotive
industry is dominated by two-wheelers, while cars account for about 10.7 percent of
the total industry. The potential for growth is enormous.
The Indian Government’s Automotive Mission Plan 2006-2016 states that the Indian
passenger car market is expected to reach 3 million by 2015, making India as one of
the top 10 car markets in the world. India is also expected to remain as the second-
largest two-wheeler manufacturer, the largest tractor and three-wheeler manufacturer
and the fourth-largest truck manufacturer in the world by 2015. The main
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considerations driving customer preference are mainly reliability and economy.
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GOVERNMENT COMMITMENT AND SUPPORT STILL LIKELY

IN THE FUTURE
Post-liberalisation the government has made specific attempts to reduce barriers and
controls, such as allowing 100 percent foreign direct investment in the automotive sector
and reducing customs tariffs on automotive components. The government has also set an
ambitious target of increasing the revenue turnover derived from the automotive sector
from about 5 to 10 percent of the GDP by 2016. The emphasis in the future is expected to
be on exports of small cars, multi-utility vehicles, two-wheelers and components. With
regard to emission norms for passenger cars, the government has proposed the
implementation of Euro–IV emission norms from 2010 onwards, which is likely to lead
to an increase in car prices. According to Avik Chattopadhyay Deputy General Manager,
Marketing, of Maruti the Indian government is expected to continue the process of
reforms even in the future
The Indian passenger car industry is dominated by the small car segment, and more
specifically the compact car segment, both in terms of growth rates as well as
contribution to total passenger car sales. Due to the fact that India is a low-income
market, the dominance of small cars is expected to continue even in the future. Tata
Motors, a leading Indian OEM, has plans of launching a small car at USD 2,326 in
20083. This is expected to convert a lot of two-wheeler prospects into passenger car
customers. This is also expected to lead to other OEMs launching similar
products/reducing prices and the creation of a new segment (below even the mini-car
segment). Rural customers are also expected to be likely target segments for this car. The
four-wheeler market (including commercial vehicles) is dominated by Asian OEMs, with
American OEMs occupying only about three percent of the market. Hence, resurgence
from the American OEMs seems likely in the future. Recently, the American OEMs have
also announced their plans for capacity expansions – however, the main difficulty is their
lack of expertise for making fuel-efficient, small cars. General Motors (GM), in order to
circumvent this, has recently announced the launch of a Daewoo small car (known as the
Spark) in India in 2007.
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The used-car market is also expected to grow in the future, especially considering the
fact that the ratio of used-car sales to new-car sales is about 1:1 in India – this is less than
the global ratio of 2:1. The major OEMs, including Maruti, Hyundai, GM, etc., have
already decided to enter this market as used car dealers. Increased market share for fuels
other than petrol is expected in the passenger car segment, especially considering the
rising prices for petrol. Diesel is expected to capture about 35 percent of the market share
in 2010, the current share being 30 percent. Maruti and Hyundai, two major gasoline
players, have announced their plans to enter the diesel market as well. LPG as a fuel is
also gaining popularity as it is cheaper than petrol and requires less maintenance and
conversion costs as compared to CNG. Research work on bio diesel as a fuel for the
future is also underway.
The Indian manufacturing may go through periods of overcapacity as the vehicle capacity
estimations are about three million passenger cars in the next five years. A recent trend
observed is the sharing of manufacturing facilities – for example, a deal between Maruti
and Nissan, wherein the former is expected to produce cars on its assembly lines labeling
them as ‘Nissan’. The use of Aluminum in automotives is expected to increase especially
since this helps in boosting fuel economy, performance and safety, while reducing
emissions. The use of electronics in manufacturing is also expected to increase.
INDIA: THE SOON TO BE SMALL-CAR HUB

Small cars constitute about 78 percent of the domestic demand, making India the third-
largest producer of small cars after Japan and Brazil. Therefore, the government has
decided to launch a programme to make India a small car hub in the future – a recent
reduction in excise duties from 24 percent to 16 percent exclusively for small cars being
an initiative in this direction. The major players not present in this segment have also
drawn up plans for entering this segment in the near future. Players with expertise in
small car, such as Maruti and Hyundai, have formulated plans for ramping up production
capacities. It is likely that with the small car volume increase (both due to domestic
volumes and exports) in the next decade, domestic players, such as Tata Motors, would
become strong global players.
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COMMERCIAL VEHICLES TO CONTINUE STRONG GROWTH

This segment has shown strong growth over the last 5 years (at CAGR of over 20
percent), and the growth is likely to continue in the future as well as this is mainly
dependent on economic progress and road-network availability, both of which are
growing at a fast pace in the country. According to the National Highway authority
estimations, the growth of highways is expected to proceed at a CAGR of about 6 percent
during 2006-2015, in contrast to a growth of about 1.2 percent during 1951-1995.
The future is also expected to witness more product sophistication with increasing power
to weight solutions especially for the truck segment. Multinationals have already made an
entry in the segment with MAN, Daimler Chrysler and Volvo already present in the
market.
INDIA FIRMS VENTURING ABROAD
Manufacturing occupies about 60 percent of the total direct overseas investments by
Indian companies in various sectors. The Indian automotive companies, including both
Indian OEMs and well as component manufacturers, have been investing mainly in the
domains of forging and casting, particularly in European countries. So far, the industry
has witnessed 16 acquisitions (five in 2005). The collapsing auto ancillary industry in
these regions makes the deal extremely affordable for Indian companies, providing them
market access and brand enhancement opportunities in a new region. Indian companies
are also investing in emerging Asian economies such as China to establish a new
sourcing base in the region.
Global automotive players: sourcing parts & outsourcing R&D base to India
The auto component exports sector is expected to show a strong growth with an estimated
CAGR of 34 percent by 2014. All the leading OEMs in the world are already sourcing
components from India, mainly in steering systems, casting products and electrical, such
as motors and wiring, harnesses.
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The Indian automobile industry has four major segments -- commercial vehicles (CVs),
passenger vehicles, three wheelers, and two wheelers. The market share for each of these
segments of the Indian automobile industry, for the year 2003-04. According to the
Society of Indian Automobile Manufacturers (SIAM) , the Indian passenger vehicle
market has three categories -- passenger cars, multi-purpose vehicles (MPVs), and utility
vehicles (UVs). The passenger car market is further divided into various segments based
on the length of the car (Refer to Exhibit II for a detailed description of the lengthwise
classification of passenger cars. The Indian automobile industry was a highly protected
slow-growth industry with very few players till the opening up of the Indian economy in
1991. Low manufacturing costs, availability of skilled labor, an organized component
industry, and the capability to supply in large volumes attracted global auto majors to set
up their operations in India after the opening up of the sector. For example, Fiat and
DaimlerChrysler started outsourcing their component requirements to India. 100 percent
Indian subsidiaries of global players, like Delphi Automotive Systems and Visteon ,
exported components to other parts of the world.
Macroeconomic factors like government regulations, low interest rates, and availability
of retail finance played an important role in the rapid development of the automobile
industry in India during the late nineties (Refer to Exhibit III for an understanding of the
impact of the Union Budget on the Indian automobile industry over the years)..… The
leading Indian manufacturers are aggressively aspiring to become Tier-I suppliers – the
OEM: aftermarket ratio in exports has changed from 35:65 in the last decade to 75:25 at
present. According to a Government of India estimate, there are 400 large firms in the
organised sector and about 10,000 firms in the unorganised sector. The entry of more
foreign companies in the sector is expected to lead to greater regulation, pruning of the
spurious market and the unorganised players ceasing to be stand-alone companies, and
entering into either contract manufacturing or becoming ancillary units. India is also
showing an increasing prowess in automotive design and development. Global MNCs,
such as GM, Ford, Delphi, Visteon, etc., have already set up their R&D centres in India.
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The main advantage of these centres is the low development costs – it takes 1/5th of the
costs to develop or engineer products in India as compared to global rates.
8. SWOT ANALYSIS
STRENGTHS
1. Brand Name: Maruti Suzuki has emerged as a strong brand name in recent times.
Backed with the parent company Maruti Suzuki this is recognized as a strong
player in worldwide automotive market, Swift has definitely a value associated
with it any individual will like associatd with.
2. Large Distribution Network: With a strong dealer network of around 3000 dealers
al around the country, Maruti Suzuki has made its presence felt in each and every
corner of India.
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3. Wide Product offerings at different price points: Maruti Suzuki has launched
various models in various segments and hence has a very good product mix of
offerings as different price points.
4. Cheapest cars in respective segments: Maruti Suzuki has always followed an
aggressive pricing policy. As a result it has its cars priced at lowest possible rates
in respective segments.
5. Encouraging Exports: Backed by a strong production and a global setup at
Gurgaon, Maruti Suzuki is exporting a lot. An export of worth Rs. 1,325 crores
has been achieved in last six months.
6. Awarded Many Awards: Maruti Suzuki has been awarded with many awards and
recognitions like “The Star Company” amongst unlisted companies by Business
Standard this year. Its various models like Swift has achieved many awards,
thereby increasing the brand value of the company.
7. Economy with technology: Maruti Suzuki’s cars have always seen as a company
producing cars blending economy with technology. Swift’s initiative of putting a
16-bit microprocessor on board has proved as one of the major reasons for its
success and that too for the lowest price in its segment.
WEAKNESS
1. Lack of in house R & D: Maruti Suzuki do not have a comprehensive R & D
department.
2. New model introduction to only cosmetic changes: There is no major design
changes incorporated in Maruti Suzuki products. Only some cosmetic changes
have been made.
3. Dominance mainly at lower level: Maruti Suzuki dominance in Indian market is
only at its lower level segments like Swift in B-Segment and Accent n C-
Segment. It has to focus on its upper segment models to strengthen its position in
Indian car industry.
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OPPORTUNITIES
1. Rise of Indian middle class and small cities: As a phenomenal growth is seen in
recent times in Indian middle class and the purchasing power of working class
individuals. Also a rise in small cities across the country has given a great
opportunity to Maruti Suzuki for achieving a higher growth rate in coming times.
2. A Booming Economy: Indian economy is growing at a rate of on an average of
7% every year thereby giving an opportunity of larger sales in each and every
segment.
3. Rising exports: With a export of Rs. 1,325 crores in last six months, Maruti
Suzuki has a great opportunity of achieving a export target of Rs. 2,700 crores in
this fiscal year.
THREATS
1. Many players fighting for the same cake: There a many major players in the B-
Segment and since the size of market is not expanding rapidly, Maruti Suzuki has
a major threat in form of tough competition.
2. Entry of new players: with coming of Tata Indica and other players planning to
come out with much more models in B-Segment, the competition is just getting
hotter.
3. Cannibalism: to some extent the Zen is affecting Swift because of its price. Thus
Maruti Suzuki has to focus more on its positioning strategy of Zen and Swift.
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9. MARKETING STRATEGY OF MARUTI SUZUKI
(PVT.) LIMITED
The marketing strategy of the Maruti Suzuki Pvt. Ltd. can be measured from the following story:
EFFICIENT PRODUCTION AND DISTRIBUTION CAPABILITIES
Just three months after it launched Swift, Maruti Udyog Limited has already sold over 8,000
units of the car and added another 5,000 next month. There's a four-month waiting period for the
1,298-cc hatchback -- the company claims more than 9,000 bookings before the car was
launched. And that's even while competitors -- Corsa Sail, Hyundai Getz and Fiat Palio -- are
available off the shelf. Not surprisingly, MUL now has a lot riding on the car: there's over Rs
440 crore (Rs 4.40 billion) invested in the project (Rs 250 crore-odd is MUL's share). Not only is
the company hoping that the Swift will help expand the market for the B-plus segment (premium
hatchbacks), it's also counting on Swift to make a style statement -- that Suzuki can deliver good-
looking cars on Indian roads. For a company that has been known more for its value-for-money
proposition -- from the 800 to the Esteem -- that's important. "It's not as if our cars weren't style
statements. It's just that with Swift, we have made a break from the past," reveals a company
official.
The buzz around Swift began in December 2004 -- five months before its launch. All new
WagonRs and Maruti Omnis came with stickers and sunshields that proclaimed "My next car is a
Swift." Unlike most car launches, where the look of the vehicle is kept under wraps until the last
possible moment, photos and specs were made available at showrooms several months earlier.
Models of the car were placed on high platforms at busy intersections in Delhi; while cars were
on display in malls. "It works well for those who don't have the inclination to really go to a
dealer and check out the car," says a company official. The launch was staggered over three to
four days in 15 cities across the country, coinciding with the worldwide launch of the car. MUL
also made good use of its Rs 20 crore (Rs 200 million) marketing budget. For the first time, it
opted for an in-film placement -- Swift appeared in the Bollywood hit Bunty Aur Babli, which
was released on the same day as the car launch, May 27. And it trained 1,000 salespeople --
called "energisers" -- to exclusively sell the Swift. Perhaps the Swift's biggest plus is its price.
Introduced at Rs 387,000 for the base model, it was close to about Rs 50,000 less than its
competitors. Even the top-end version was Rs 70,000 cheaper than the Hyundai Getz GLS. MUL
does not want to give this pricing advantage away. Although it hiked prices by Rs 10,000 in
early June, advance bookings were honoured at the introductory price. And since the car is
priced at just under Rs 400,000, Delhi residents pay only 2 per cent road tax, compared to 4 per
cent for a car that costs more than Rs 400,000.
Suzuki Motor Corporation's expansion plans, which set the Japanese company on a collision
course with the government, could turn out to be a big push for the automobile components
industry. The 250,000 cars per annum assembly unit announced by Suzuki could result in an
investment of up to Rs 7,500crore (Rs 75 billion) by the components industry. The entire
sourcing for the venture is proposed to be done locally. Though Maruti Udyog, which will own
70 per cent of the venture, is yet to announce its investment in the project, the automobile
components industry expects it to be around Rs 2,500 crore (Rs 25 billion). As every rupee spent
in a car project needs to be backed by a downstream investment of Rs 3 in components, vendors
say the industry could see an investment of Rs 7,500crore. "We are very bullish on this
development, though we are yet to do our calculations on what the Suzuki Motor investment
means to us exactly," Surinder Kapur, chairman of the Sona Group, one of the largest vendors of
Maruti Udyog, told Business Standard. Any new demand can be met only by adding fresh
capacity. "The automobile components industry has to make substantial investments in
increasing capacity to meet the additional demand," said Dilip Chenoy, director-general, Society
of Indian Automobile Manufacturers. McKinsey & Co had in a recent study said the Indian
automobile component industry had the potential to become a $33-40 billion industry by 2015.
Suzuki's expansion plans could turn out to be a big push in that direction.
Having successfully completed the supply of fuel neck and real axle for Maruti Udyog Ltd
(MUL) vehicles during last fiscal, Jay Bharat Maruti Ltd (JBML), the Rs 422-crore manufacturer
of components for automotive applications, is now working on another expansion programme.
The company is also planning to set up a coating facility and additional welding lines. Further, it
has also decided to expand its existing capacity to meet the increased demand of MUL. "At
present, the company is working on a major expansion plan for new model of Maruti YN4 and
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will be setting up facilities for manufacturing of the rear axle in technical collaboration with
Yorozu Corporation, Japan," a JBML official told the researcher. However, declining to divulge
the details on investments involved in the expansion project and the implementation schedule, he
said, "the details for the finalisation of technical collaboration and expansion project are still
being worked out in constant consultations with Maruti Udyog. We will announce them as and
when they were finalised." The official said that Maruti Udyog has recorded first ever sales of
4,72,122 vehicles in its 20 years of operations with 30 per cent growth over the previous year.
"Our performance is mainly attributable to performance of MUL, our main customer. During last
fiscal, we have recorded an increase of 35.39 per cent in sales over the previous year." Stating
that the company has already started commercial supplies of fuel neck to MUL during last fiscal,
the JBML official said the test trials have been conducted for rear axle and the commercial
supplies would start during the first half of current fiscal. Expressing concern over the
unprecedented hike in steel prices, the official said the steel prices during last fiscal increased by
almost 40 per cent. According to him, reduction in import duty on components, strengthening of
rupee against dollar, thus making import cheaper, and signing of free trade agreement with other
countries would further add to the concerns.
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10. PEST ANALYSIS
In order to understand the conditions under which the Maruti products were launched in the
Indian market, it’s necessary to analyze the factors that influenced its effectiveness.
Political Conditions
 Maruti Suzuki entered India when liberalization was at its peak. As a result, everyone
was very open to the idea of foreign companies collaboration (Maruti India + Suzuki
Japan) setting up base in India.
43
 The government insisted on the Companies using 70% local content in the manufacture
of the cars as they would have generated tremendous revenue for India. Maruti Suzuki
achieved this in a very short time.
 A positive EXIM policy also has helped Maruti Suzuki to boost its top line with Exports
of Maruti Suzuki products to other countries.
Economic Conditions
 The economic conditions during the launch of Maruti Suzuki were very relaxed and
liberal. Maruti Suzuki was launched when the country had just opened its doors to
liberalization. So there were no strict norms or bylaws that the company had to adhere by.
 The resources available in India were utilized by the multinationals (Suzuki), which
generated considerable revenue for the government.
 A booming banking sector and a phenomenal growth in Auto Loans market has made
Maruti Suzuki more affordable.
Social Conditions
 A rise in Middle class and concept of small nuclear families has propelled a demand of
B-Segment cars. Maruti Suzuki provides an exact choice for this demand leading to its
high growth.
Technological Conditions
 Since Maruti Suzuki manufacturers everything from the smallest of screws to the biggest
of machines in its factory it is able to maintain the efficiency of the machines. Maruti
Suzuki therefore manufactures cars under best of conditions with the best of machinery.
As a result, the cars manufactured are of top quality.
44
11. STP – SEGMENTATION, TARGETING,

POSITIONING
Marketing is not an event, but a process . . . It has a beginning, a middle, but never an end, for it
is a process. You improve it, perfect it, change it, even pause it. But you never stop it completely.
- Jay Conrad Levinson
SEGMENTATION
Segmentation is based upon considerable evidence that a single marketing approach or formula
will not work for all members of the community to be served.
Geographic :-
The region of interest of Maruti Suzuki is whole India with special focus on Type A and fast
growing Type B cities across India.
Demographic:-
Age – Anybody of age between 20 – 40 yrs.
Income – Anybody with an income of over 4lakh p.a.
45
Occupation – Millennials employed as professionals, managers and those want to buy their first
car.
Social Class – Middle class, Upper middle, Lower Upper and Upper uppers.
Psychographic:-
Personality – Dreamers, those who want to achieve big, ambitious, price conscious, took their
first step towards success and value driven.
Behavioral:-
Benefits – Quality, Style, Price (economical)
User status – Potential users and first time users
Buyer – Readiness Stage – Those who are aware, informed, interested and intend to buy
TARGETING
In evaluating the market segments Maruti Suzuki has looked at two factors - The segments
overall attractiveness and the companies resources. As is very clearly seen Maruti Suzuki has
opted for a selective specialization kind of targeting. Maruti Suzuki has selected a number of
segments each objectively attractive and appropriate. There is minimal synergy among the
segments but each is a cash cow. This multi segment strategy has had the effect of diversifying
the firm’s risk.
Having Bollywood celebrities to endorse its cars paid off for Maruti Suzuki. Bollywood
celebrities like Sunny Deol as a brand ambassador targets two sections of the society. Firstly, his
glamorous and sophisticated image appealed to the elite effecting their purchase decisions.
Secondly, his adorable persona appealed to the middle class buyers who wanted a good car for
the ‘big’ investment they were making and for people who were graduating from the second
hand car.
The low price tag of Maruti Suzuki initiated a price war among all companies and forced Tata
Indica to pre-pone its launch. The initial low price tag and strengthened by a solid marketing
initiatives in form of print advertisements provided a solid foundation for Maruti Suzuki in India
which showed in its sales of 17000 units in just 5 months.
46
Maruti Suzuki has identified its target market based on its pricing strategy. Swift aims to be the
price leader in B-Segment cars. It has always priced its base model lower than Zen or Indica
giving all the features which they give in their higher models. With a constant change in its
positioning strategy, Maruti Suzuki Swift has succeeded in identifying its target market every
time and emerging as the fastest selling car in its own segment. With the invent of Swift, Maruti
Suzuki is looking towards entire new segment of consumers and all set to target it to emerge as
the market leader in B- Segment cars.
POSITIONING
Since its inception, Swift has undergone a lot of changes in terms of its positioning. First it was
Swift, then Swift VXI, and then came finally Swift VDI.
When Swift was initially launched it was positioned as “The Complete Family Car”. Since Swift
was launched in B-Segment, it had Santro and Tata Indica as its biggest competitors in that
segment. The stylish ‘Tall Boy’ Design of Swift together with its slogan helped it to position
itself as one of the cars to look upon. With a constant change in its positioning, Maruti Suzuki
always tried to keep alive the buzz associated with Swift.
Maruti Suzuki repositioned Swift as “Sunshine Car (smart car for young people)” from earlier
“complete family car”. This was done because the competitors were coming out with similar
products and then Maruti Suzuki started what they call as ‘Emotional Positioning’. This
repositioning of Swift also helped it to target the segment of first time car buyers. Even the print
ads at this time were designed in a way to project Swift as the first car for the fastest growing
consumer segment of India at that time, The Young Professionals, of the service industry that
combined with various loan facilities were too eager to buy their first car. This led to a
phenomenonal growth in its sales and further strengthening its position as a brand in consumer
mind. Thus the repositioning of Swift gave it an edge over its competitors and also to emerge as
a tough rival to Maruti 800 as ‘The First Car’.
47
12.PRODUCT LIFE CYCLE
The New Product progresses through a sequence of stages from Introduction to Growth,

Maturity and Decline. This sequence is known as The Product Life Cycle and is associated
with changes in the marketing situation, thus impacting the marketing strategy and the marketing
mix.
INTRODUCTION STAGE :- Cars like Alto K10 and Kizashi market share is slight but
marketing cost are low.
GROWTH STAGE :- Cars like Swift Dzire , zen Estillo and SX4 are characterized by rapid
growth in sales and profit.
MATURITY STAGE :- Cars like Alto, Wagon R and Swift competion is intense and any
significant move is likely be copied by the competitor.
DECLINE STAGE :- Cars like Omni and Gypsy is Shrinking thus reducing the overall profit.
48
13. LEARNINGS & ACHIEVEMENTS
* Design and develop marketing solutions for current retail environments by employing
appropriate marketing strategies.
* Apply knowledge of basic management skills to maximize employee productivity.
* Evaluate and apply marketing practices to create measurable results to meet marketing
objectives
.
* Use foundational skills and knowledge to remain current with marketing and management
strategies and trends and employ them in new business environments.
* Utilize effective communication, problem solving and decision- making skills through the use
of appropriate technology and with the understanding of the business environment.
49
*Apply problem solving skills using financial accounting principles through appropriate
technology and with the understanding of the business environment.
* Use organizational team building strategies.
*Use customer relationship management strategies within any business or retail organization.
*Use supervision, management and organizational behavior principles and skills for any
marketing occupation.
*Apply principles and practices of supervision in panning, organizing, staffing and controlling.
*Apply principles and practices of organizational behavior for Improving performance and
commitment.
*Apply principles and practices of human resource management in labor relations, appraising
performance, staffing, recruiting, hiring and training
*Use foundational skills and knowledge to remain current with management strategies and trends
and employ them in new business environments.
*Design and develop marketing solutions for current retail environments by employing
appropriate marketing strategies.
*Apply fundamental marketing principles of product, price, place and promotion

.
*Apply fundamentals principles and practices of retail operations and merchandise management
.
*Apply fundamental customer-service and selling skills.
50
* Use foundational skills and knowledge to remain current with marketing strategies and trends
and employ them in new business environment.
14. RESEARCH METHODOLOGY
The purpose of methodology section in the report making is to describe the research process that
is followed while doing the main part. This would however include the research design, the
sampling procedure, and the data collection method. This section is perhaps difficult to write as
it would also involve some technical terms and may be much of the audience will nor be able to
understand the terminology used. The methodology followed by the researcher, during the
preparation of the report was:
Research Design
A research design is purely and simply the framework or plan for a study that guides the
collection and analysis of data. The survey research was used in this project, because consumer’s
feedback was necessary for obtaining the data.
Research Instrument
For doing the survey research, structured questionnaire with both open-ended and closed-ended
questions was used.
Mode of Survey
51
The mode of survey was personal interview with the respondents during the filling up of the
questionnaires.
Personal Visits
As a part of the analysis, it was necessary to visit the students of different school, as it would
always help me knowing the nature of students. We visited different schools and asked the
student different questions which are formatted in the questionnaire.
Data Sources
Primary Data
Primary data is that kind of data which is collected directly by the investigator himself for the
purpose of the specific study. Primary Data is collected by the investigator through interviews of
company employees, vendors, distributor etc. Data such collected is original in character. The
advantage of this method of collection is the authentic. A questionnaire of about 50 questions
was made and it was given to the dealers to fill it up for our research. The research was a kind of
conclusive research as it helps in the testing of hypothesis. The method of sampling was the
Random method as it is unbiased.
Secondary Data
When an investigator uses the data that has been already collected by others, is called secondary
data. The secondary data could be collected from Journals, Reports, libraries, magazines, fair &
conference and other publications. The advantages of the secondary data can be –It is
economical, both in terms of money and time spent .The researcher of the report also did the
same and collected secondary data from various internet sites like www.google.com,
52
www.airtel.com, www.hutch.co.in and many more. The researcher of the report also visited
various libraries for collection of the introduction part.
QUESTIONNAIRE DESIGN
We make questionnaire to know which category of people opts for which kind of plans. In this
category the factors included are such as income, background, age, etc. This includes 2 types of
questions
1. Open ended
2. Closed ended
I. Open ended : In this respondents are not bounded to answer within a set of choices and
can give their own views
II. Close-ended: in this respondents are bounded to answer within a set of choices.
I have designed my questionnaire on the basis of close-ended questions as it is more feasible

to calculate data from it.
SAMPLE DESIGN:
While developing a sample design, following points should be kept in mind:
 Sampling unit: A decision has to be taken concerning a sampling unit before selecting
sample. Sampling unit may be a geographical one such as state, district, village etc or a
construction unit such as house, flat etc. or it ,may be as social unit such as family, club,
53
school etc or it may be an individual . the researcher will have to decide one or more of
such units that he has to select for his study
 Size of the sample: This refers to the number of items to be selected from the universe
to constitute a sample. This is a major problem before a researcher. The size of the
sample should be neither is excessively large, nor too small. it should be optimum
An optimum sample is one which fulfills the requirements of efficiency, representatives,
reliability and flexibility
Sample element and sample unit
45 people have been interviewed to know their opinion about insurance and finance
Extent
Mumbai (sample unit)
Time frame: 8weeks
Sampling technique: Average method technique.
Sampling frame: 45-50 People.
54
55
15. DATA ANALYSIS
1. Are you aware about the present boom in Market?

(i) Yes
(ii) No.
90%
80%
70%
60%
yes
no
50%
40%
30%
20%
10%
0%
As regard to market boom and the respondents awareness level about this, nearly 82% of the
respondents are aware about the market boom in the present economy, while the rest 18% are not
aware about any market boom. The awareness level is high among the middle and the upper
middle class, and particularly among the business class and the traders. One of the interesting
finding of the study was that many respondents confuse between inflation and market growth.
Respondents belonging to lower middle and middle class confuse whether price rise has anything
to do with the automobile industry scenario.
About the reasons, 65% of the respondents who are aware about the market boom feel that it
reflects the resilience of the Indian economy and reflects a true picture of it. This they attribute to
the persistent increase in Sensex and continuing economic growth rate which is somehow near
56
the double digit mark. 27% of the respondents who are aware about the market boom feel that
this is a temporary situation which is likely to recede. Rest of the respondents could not attribute
any concrete causal relationship for the market boom.
2. What method do you follow for marketing of your products?

(i) Only Direct sales Method--------------------- 28 percent
(ii) Only Indirect Dealership Method----------------- 18 percent
(iii) Both ---------------------------------------------------- 54 percent
57
60%
50%
40%
only direct sales method
only indirect sales method
both
30%
20%
10%
0%
3. Do you
think Advertisement is an effective method of selling your automobile products?
(iv) Yes------------------------------------------------- 45 percent
(v) No----------------------------------------------------- 18 percent
(vi) Do not know/ Cannot say-------------------------27 percent
58
45%
40%
35%
30%
yes no
25%
cant say
20%
15%
10%
5%
0%
4. What
type of advertising will be helpful in increasing salability of your auto products?
(vii) Product Specific------------------------------------- 34 percent
(viii) Company Specific---------------------------------- 22 percent
(ix) Personality oriented ------------------------------- 17 percent
(x) Do not know / Cannot say ------------------------ 27 percent
59
35%
30%
25%
product specific
20% company specific
personality specific
cant say
15%
10%
5%
0%
60
5. Do you think that branding helps in the marketing of your automobile products?
(xi) Yes------------------------------------------------- 34 percent
(xii) No----------------------------------------------------- 27 percent
(xiii) Do not know/ Cannot say-------------------------39 percent
40%
35%
30%
25%
yes no
cant say
20%
15%
10%
5%
0%
61
6. Do you think that auto fairs are effective methods of sale promotion?
(xiv) Yes------------------------------------------------- 55 percent
(xv) No----------------------------------------------------- 12 percent
(xvi) Do not know/ Cannot say-------------------------33 percent
60%
50%
40%
yes no
cant say
30%
20%
10%
0%
62
7. Do you think that Foreign Direct Investment (FDI ) should be allowed in the auto mobile
sector in India?
(xvii) Yes------------------------------------------------- 34 percent
(xviii) No----------------------------------------------------- 32 percent
(xix) Do not know/ Cannot say-------------------------34 percent
34%
34%
33%
yes no
cant say
33%
32%
32%
31%
63
8. Do you follow branding of products as a Marketing strategy?
(i) Yes ------------------------------------------------------------------------ 74

percent
(ii) No -------------------------------------------------------------------------- 05
percent
(iii) Do not know/ Cannot say --------------------------------------------- 21
percent
64
80%
70%
60%
50%
yes no
cant say
40%
30%
20%
10%
0%
65
9. Does branding of products helps to improve the marketing potential of your products?
Yes --------------------------------------------------------------------------- 68 percent
No --------------------------------------------------------------------------- 12 percent
Do not know/ Cannot say --------------------------------------------- 20 percent
70%
60%
50%
yes no
40%
cant say
30%
20%
10%
0%
66
10. Future of the automobile industry in India.
(i) The boom will continue --------------------------------------------- 75 percent

(ii) The boom is a temporary economic situation---------------- 12 percent
(iii) Do not know/ Cannot say ------------------------------------------- 13 percent
80%
70%
60%
50%
yes no
cant say
40%
30%
20%
10%
0%
67
11. Major Weakness of Maruti Suzuki’s Marketing strategy.
 Branding ------------------------------------ 14 per cent

 Publicity ----------------------------------------- 09 percent
 Infrastructure assessment and Development -------------------------------- 77 percent
80%
70%
60%
50%
branding publicity
infrastructure assessment &

40% development
30%
20%
10%
0%
68
12. How do the Foreign Automobile Companies affect the prospects of the domestic players
in the Indian market?
(i) 32 percent ------------------------------ have reduced the profit

margin of the domestic players
(ii) 53 percent ---------------------------------- have made the
automobile industry more competitive.
(iii) 07 percent ------------------------------- do not have significant
effects on the domestic players operating in the automobile
industry
(iv) 08 percent ------------------------------- do not know / Cannot say
69
60%
50%
40%
reduced the profit margin
made industry more competitive
30%
do not make any significant effect
20%
10%
0%
70
13. Maruti Suzuki has a future growth. You opinion

(i) 75 percent -------------------- Maruti Suzuki is gradually spreding its wings and being a
very big company has the capacity to absorb short term losses, hence has a very good
prospect for the future market in India.
(ii) 20 percent ---------------------- Its future is like any other private automobile
companies in India
(iii) 5 percent -------------------- do not know/ Cannot say
80%
70%
60%
Maruti is growing and has good future

50%
Maruti is like any other automobile

company
40%
cant say
30%
20%
10%
0%
71
14. Which is the major factor to increase the sale of your products?
(i) Only Brand ----------------------17percent
(ii) Demand-Supply factors ------35 percent
(iii) Only Quality ----------------------- 23 percent
(iv) Other factors ---------25 percent
72
35%
30%
25%
only brand
20% demand-supply factor
only quality
others
15%
10%
5%
0%
15. Do you
think brand extension is necessary for the company? If yes, why?
(i) 78 percent --------------------------------- Yes

(ii) 04 percent -------------------------------- No
(iii) 18 percent -------------------------------- Do not know / Cannot say
73
80% Those who

believe that
70%
brand
extension is
60%
necessary as
50% yes no part of its
cant say marketing
40%
strategy
30% holds the
view that
20%
when a
10%
known brand
extends into
0% a product
category that
involves sophisticated and state-of-the-art technology, consumers face uncertainty and
perceive a financial risk when considering the extension for purchase. The recognition that
brands are a powerful yet underutilized assets is why trademark licensing has become a
popular marketing strategy. Because many brand owners don't have the resources to pursue
every viable business opportunity, they utilize trademark licensing to enter new markets
beyond their core competencies.
RECOMMENDATIONS
Key Attribute Components:
 Operational attributes.
 Globalization is yet another opportunity, if followed effectively & promptly.
74
 Brand Image.
 Customer Specific Details.
 An excellent service & support infrastructure.
 Ability to provide the cutting edge technology at best-value-for-money
 Strong customer relationships
 World Class Quality standards maintained for PPP (People, Processes &
Performance). Alliance with global technology leaders.
 The message should to the customers be sent in these components only to have the
maximum benefit from the advertisement.
 With the fast growing economy the pricing strategy needs to be tackled with care as it
can decide upon long term decisions of the company.
17. QUESTIONNAIRE
75
1. Are you aware about the present boom in Market?

 Yes
 No
2. What method do you follow for marketing of your products?

 Only Direct sales Method--------------------- 28 percent
 Only Indirect Dealership Method----------------- 18 percent
 Both ---------------------------------------------------- 54 percent
3. Do you think Advertisement is an effective method of selling your automobile products?

 Yes------------------------------------------------- 45 percent
 No----------------------------------------------------- 18 percent
 Do not know/ Cannot say-------------------------27 percent
4. What type of advertising will be helpful in increasing salability of your auto products?
76
 Product Specific------------------------------------- 34 percent

 Company Specific---------------------------------- 22 percent
 Personality oriented ------------------------------- 17 percent
 Do not know / Cannot say ------------------------ 27 percent
5. Do you think that branding helps in the marketing of your automobile products?
 Yes------------------------------------------------- 34 percent
 No----------------------------------------------------- 27 percent
6. Do you think that auto fairs are effective methods of sale promotion?
 Yes------------------------------------------------- 55 percent
No----------------------------------------------------- 12 percent
7. Do you think that Foreign Direct Investment (FDI ) should be allowed in the auto mobile
sector in India?
 Yes------------------------------------------------- 34 percent
 No----------------------------------------------------- 32 percent
8. Does branding of products helps to improve the marketing potential of your products?
 Yes ---------------------------------------------- 68 percent

 No ----------------------------------------------- 12 percent
 Do not know/ Cannot say-------------------- 20 percent
9. Future of the automobile industry in India.
77
 The boom will continue --------------------------------------------- 75 percent

 The boom is a temporary economic situation---------------- 12 percent
 Do not know/ Can not say ------------------------------------------- 13 percent
10. Major Weakness of Maruti Suzuki’s Marketing strategy.
 Branding ------------------------------------ 14 per cent

 Publicity ----------------------------------------- 09 percent
 Infrastructure assessment and Development -------------------------------- 77 percent
11. How do the Foreign Automobile Companies affect the prospects of the domestic players
in the Indian market?
 32 percent ------------------------------ have reduced the profit

margin of the domestic players
 53 percent ---------------------------------- have made the automobile
industry more competitive.
 07 percent ------------------------------- do not have significant
effects on the domestic players operating in the automobile
industry
08 percent ------------------------------- do not know / can not say
12. Maruti Suzuki has a future growth. You opinion

 75 percent -------------------- Maruti Suzuki is gradually spreading its wings and being a
very big company has the capacity to absorb short term losses, hence has a very good
prospect for the future market in India.
 20 percent ---------------------- Its future is like any other private automobile companies in
India
78
 5 percent -------------------- do not know/ can not say
13. Which is the major factor to increase the sale of your products?
 Only Brand ----------------------17percent
 Demand-Supply factors ------35 percent
 Only Quality ----------------------- 23 percent
 Other factors ---------25 percent
14. Do you think brand extension is necessary for the company? If yes, why?
 78 percent --------------------------------- Yes

 04 percent -------------------------------- No
 18 percent -------------------------------- Do not know / Cannot say
15. Which are the products of the company that are favourite among the customers? Please
give the reasons as you think.
 55 percent --------------------- Quality based
 30 percent ---------------------Economical/ Cheap
 06 percent ---------------------- Branded
 09 percent ------------------------ Do not know /Cannot say
16. Do you see the probability of a separation between Maruti and Suzuki in future?
 Yes ------------------------------------------------------------------ 18 percent
 No -------------------------------------------------------------------- 74 percent
 Do not know/ Cannot say ------------------------------------------ 08 percent
79
18. ANNEXURES
Interviews as per open ended format
1. Being a leading automobile business group could you please elaborate on production
systems vis-à-vis Vendor Management?
A lean manufacturing system is the order of the day. State-of-the-art systems to monitor and
ensure best of breed processes are the key within their business systems. Also important is an
efficient supply chain system fully supportive to the lean manufacturing system.
2. Where does Indian automobile industry stand on the global map of Auto mobile
industries in the world?
The Indian Auto Industry has just started getting a foothold on the global map. Presently the
business is around US$ 8.7 billion of which approximately $1 billion is the export market. As per
the latest McKinsey report, the auto component business has a potential to grow by 30% and
touch US$ 35 to 40 billion by 2015 of which 20 to 25 billions US could be export focused.
3. Do you have a dealer network? Do you sell directly or through dealers?
As regards their marketing strategy, it could be derived from their responses that they have a
large dealer network. A customer may also contact their branch office in his/her area to get the
names and addresses. They can also supply sections directly. For smaller lots, the traders/ dealers
may be contacted.
80
19.LIMITATIONS OF RESEARCH
Due to the following unavoidable and uncontrollable factors the results might not be accurate.
Some of the problems might face while conducting the survey are as follows:
1. Certain open-ended questions have been put in the questionnaire to give

respondents freedom to express their perception.
2. Time and cost constraints were also there
3. Chances of some biasness couldn’t be eliminated.
4. A sample size of 100 has been used due to time limitations.
5. The data has been collected from Mumbai(South) and there the perception of the
people from the smaller towns could not be judged
6. All the data has been collected at random but it is always liable from biasness.
81
20. CONCLUSION
Maruti Udyog Ltd., a joint venture between the Government of India and the Suzuki Motor
Corporation of Japan was India’s largest automobile company in 2005. It operated in the
passenger vehicle market and manufactured affordable and fuel efficient cars for the Indian
masses. Maruti 800 was its flagship small sized car and was the best selling car in India since
decades. In 2005, Suzuki launched their global car ‘Swift’ in international markets and later in
India. Swift was the first stylish compact car from the stable of Maruti and was a differentiator
from its earlier products. The launch of Swift had brought Maruti in lime-light and various global
international automobile manufacturers announced their plans to boost their investments in India
and launch competing cars.
The Indian car market currently appears to be at a crossroads, where car marketers are attempting
to change customer perceptions of their brands and where specific buying motivations appear to
be replacing generalities.
This meanwhile, is quite unlike the west where buyers consider aesthetics, comfort and safety,
not necessarily in that order, before finalising a purchase. “It’s smarter to think about emotions
and attitudes, if marketers are to do a better job of marrying what a car offers to the consumer’s
image of the offerings.
The mindset of the Indian consumer is such that he is delighted if he buys a pen a little cheaper
than his neighbour. Things are, however, slowly changing and customers at the upper end of the
market are now ready to pay more for more. I hope that this approach will soon enter the small
car segment, maybe not with the same intensity.
“Success will largely be determined to the extent a company can differentiate itself in terms of
intangibles that go with a car”. Thus, success could well hinge on the best of bundle of services
that a carmaker can provide. Maruti Suzuki grew from zero to the 500,000 mark and the number
One sales spot in India in just five years. Looking at the present scenario it can be said that
though there is lot of competition in the auto world Maruti Suzuki is picking up well.
82
21. BIBLIOGRAPHY
Books & Journals
 Marketing Management by Phillip Kotler

 Brand positioning by Subroto sengupta
 Positioning: The Battle for your mind by Al Ries & Jack Trout
 Ahluwalia, I.J. (1988). "Industrial Policy and Performance in India" in Lucas, R.E.B. and
G.F. Papanek (eds.) (1988). The Indian Economy: Recent Development and Future
Prospects. Delhi: Oxford University Press, pp. 151-162
 Ahluwalia, I.J. (1996). "India's Opening up to Trade and Investment" in I.J. Ahluwalia,
Rakesh Mohan and Omkar Goswami, Policy Reform in India . Edited by Charles Oman.
Paris: OECD, pp. 17-41
 AIAM (1999). Recommendations for Developing Indian Automotive Policy. Association of
Indian Automobile Manufacturers, New Delhi
Newspapers, Journals & Magazines
 Business World
 The Economist
 Economic Times
 Auto car Indias
83

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PROJECT REPORT

“Study of Marketing Management Practice’’

SUBMITTED IN PARTIAL FULFILMENT OF THE

MASTER OF MANAGEMENT STUDIES

LALA LAJPATRAI INSTITUTE OF MANAGEMENT

“Study of Marketing Management Practice”

SUBMITTED IN PARTIAL FULFILMENT OF THE

MASTER OF MANAGEMENT STUDIES

TEJAS SANJAY LIMKAR

LALA LAJPATRAI INSTITUTE OF MANAGEMENT

This is to certify that the project work titled “Study of Marketing

Date: 11th September, 2019

I, Mr. TEJAS SANJAY LIMKAR, student of Lala Lajpatrai Institute

TEJAS SANJAY LIMKAR

At the outset of this project, I would like to express my profound thanks

Summer Training is an integral part of MASTER IN MANAGEMENT STUDIES. As

Maruti Suzuki is a company, which believes in providing quality. Due to these

1. INTRODUCTION TO AUTOMOBILE SECTOR

Some of the major initiatives taken by the Government of India are:

 The Government of India aims to make automobile manufacturing the main

 The government plans to promote eco-friendly cars in the country—i.e. CNG-

OBJECTIVES OF THE STUDY

2. EVOLUTION OF AUTOMOBILE INDUSTRY

INDIAN AUTOMOBILE INDUSTRY

We will be looking at the Passenger car industry in India.

The Following Table presents a Comparative view of the extent of Motorization in

Country Passenger Cars in Use Two-Wheelers in Use

3. PORTER FIVE FORCES MODEL IN THE INDIAN

Threat from New Players: Increasing Market Strength of Consumers:

Rivalry within the Industry: Market Strength of

 There is keen competition  A large number of

4. HISTORY OF AUTOMOBILE INDUSTRY

Initially, in the post-liberalization period, the automotive sector, especially the

PASSENGER CAR INDUSTRY IN INDIA: HIGHLIGHTS

TRENDS IN THE INDIAN PASSENGER CAR INDUSTRY

Distribution Systems: Product Technology: Entry of Foreign

KEY DEVELOPMENTS IN THE INDUSTRY

COMPANY NAME DOMESTIC SALES MARKET SHARE

Daimler Chrysler India 633 662 4.6 0.2 0.2

KEY DEMAND DRIVERS

MINI COMPACT MID-SIZE EXECUTIVE PREMIUM LUXURY

Vehicle Length <3400 3401-4000 4001-4500 4501-4700 4701-5000 >5000

Ford India Ltd Ikon Mondeo

MARUTI TOOK THE INITIATIVE AND GAINED

ARRIVAL OF SMALL CARS IN INDIAN MARKET WAS THE

to make inroads into the tough

6. THE COMPETIVE STRATEGIES

BRAND POSITIONING STRATEGY:

Every company is it a big or small needs an innovative promotional strategy because

Advertising. In 2003, Maruti Suzuki came up with an innovative advertising that

Distribution is an important marketing mix. In earlier days the consumers used to

FUTURE OF CAR MARKET IN INDIA

considerations driving customer preference are mainly reliability and economy.

GOVERNMENT COMMITMENT AND SUPPORT STILL LIKELY

INDIA: THE SOON TO BE SMALL-CAR HUB

COMMERCIAL VEHICLES TO CONTINUE STRONG GROWTH

EFFICIENT PRODUCTION AND DISTRIBUTION CAPABILITIES

10. PEST ANALYSIS